What is a credit card? It is a card issued by a bank, financial institutions, retail establishments, which allows the holder to make purchas...May 12, 2008

What is a credit card? It is a card issued by a bank, financial institutions, retail establishments, which allows the holder to make purchases of goods and services on credit. Credit cards are now fast becoming one of the most used modes of payments. With the advent of the internet and online buying and selling having a credit card would turn out to be very valuable.

How do we apply for a credit card? There are now countless types of credit cards to choose from. There are several things as well you have to consider when choosing which card you want to apply for. First, do some research on the different types of credit card available for you, which one you are most likely to choose and compare offers and features from different companies.

Second, think of what you're needs are and your paying capacity. If you're a little tight on the budget each month then best consider a card with low monthly interest if you'll just be paying the minimum.

Third, compare their charges, features and other offers like credit limits, interest free days, payment plans, fixed or variable interest rates, cash advance and balance transfer rates, airline miles and so on.

Fourth, verify if the card you're applying for is acceptable locally or internationally. If you travel overseas, then best to get the one that is accepted in other countries.

When you have your card, strive to maintain a good credit history. This will definitely be good for you and would provide ease in applying for more cards or loans. But for those with less than perfect credit history, don't despair, issuers now have credit card offers fair credit to give you the chance to rebuild your credit history with a low interest credit card, balance transfers and other options.